The Research For Institution Comparation Of East Region And West Region Private Capital Economy

The development difference between east region and west region is an obvious fact, which roots in the great difference on institutional transition and innovation between these two regions. This paper introduces the conception of institutional transition and therefore indicates that institution is very important internal variable through the research of the relationship between institutional transition and the development of private capital economy. These institution arrangements include formal and informal institution. The paper has applied the theories and means of the new institution economics to describe and analyze the institutional evolvement from the view of formal and informal institution.Then, this article concludes that the speed of institutional transition in west is far more slowly than which in the east. On the other hand, in west region, high-effect institutional arrangements are short of and the enforcement of institution is also not so good because of the non-rational and utterly-lag institution supply by the local government. Property rights system, financing system and industrial structure pattern between two regions are compared in order to support the above-mentioned conclusion. At last part, this paper offers suggestions on the arrangement of property rights, the innovation of financing system , transition of industrial structure pattern, strength with loyalty construction of private capital economy development in west region.